Declining Secondary Enrollment in Albania: What Drives Household Decisions?
Working Paper No. 2008-13. 45 pages. Draft: Do Not Cite without Authors’ Permission. In some post-socialist countries, the post-socialist economic downturn had a negative impact on human development indicators. Education is one area of concern. In this paper, we examine secondary schooling dynamics in Albania, where enrollment declines have occurred. Drawing on the existing literature on household investment in schooling, we examine factors underlying the recent changes. We find that, as in other counties, parental education has a significant impact on the choice to attend secondary school. But we also find that factors specifically related to transition, including household economic resources, local employment prospects, opportunity costs of children’s time, and access to school are significant predictors of schooling decisions in Albania. These findings suggest a number of areas where policy interventions may positively affect long-term outcomes.